ChiNext has staged a rebound since.....>

CHINA STOCKS: ChiNext has staged a rebound since mid-March on the back of an

improvement in risk appetite, inspired by a combination of broader central bank

stimulus and China's fiscal measures, while hope surrounding a seemingly

impending round of RRR cuts from the PBoC may have been the catalyst for the

latest leg higher. The tech-heavy index has continued to climb as its 50-DMA

crossed above the 100-DMA earlier this month, reinforcing the bullish theme. The

rally culminated in today's breach of the channel top at 2,286 & Feb 25 peak at

2,293, key resistance levels. This is an important bullish development, with the

next bullish target coming up at 2,330, which represents the high of Apr 13. A

break above there would turn topside focus to the upper 2.0% Bollinger band at

2,383. That being said, it is worth noting that the RSI index has moved into

overbought territory, which should put bears on alert. A retreat below 2,022,

which limited losses on May 28, would give them a fresh impetus.

- The chart can be accessed via the following link:

- https://emedia.marketnews.com/marketnewsintl/ChiNext.png